In the latest Trusts and Estates Newsletter, HMRC has confirmed the continuation of the interim arrangement for interest reporting.
In 2016, the requirement for payers to deduct tax at source on bank and building society interest was removed and income from these sources is now paid gross. Due to this change, trustees and personal representatives had increased reporting requirements.
HMRC introduced an interim arrangement so trustees do not have to submit returns, or make payments under informal arrangements, where the only source of income is savings interest and the tax liability is below £100.
HMRC has confirmed that these arrangements have been extended to include the 2019/20 and 2020/21 tax years. The situation will continue to be reviewed in the longer term.
Please contact your Rothmans Branch for help with trusts or if you need further information.